Short sale in South Florida
If you are having financial pressures and could possibly go into foreclosure, one option you should seriously consider is doing a short sale. When contemplating selling your home or property this may be a viable solution to your problem. Here are a few things you need to know.
What is a short sale?
A short sale is when the balance owed on the mortgage exceeds the current market value. You (the seller) are usually in a position where paying the mortgage has become a problem, which is prompting a short sale to get rid of the property. The goal is to find a buyer who wants to purchase the property at the market price. This means they have to strike a deal with the lender for approval to allow the sale of the property and release the current lien. This is not as easy as it may sound you have to demonstrate to the bank or lien holder that your finances are in such dire straits that nothing you do will help you pay the mortgage, making it necessary to sell.
Pros and cons of Short Sale for Sellers
Pros for sellers:
You may be able to sell it quickly.
By listing the home at a low price, you may be able to find a buyer quickly.
You may not have that much competition.
Short sales are not instantaneous and can take time. Because of that, the right buyer will be willing to go through the process.
This will help you potentially avoid foreclosure.
This is a win for both you as the seller and the buyer. They will get a home that is intact, and you will be able to work on your financial hardship.
Cons for sellers:
It may take a long time.
Short sales are not known to be done expeditiously, which questions the term “short sale.” In some instances, you and the buyer may have to wait months for the offer to be approved and the paperwork to be finalized.
It may not be worth your time.
Just because a short sale may seem attractive in the beginning, your buyers may not get approved. You could end up back at square one.
Steps to make the short sale happen
- 1. Every lender has its own short-sale program. The first step is to contact the primary lien holder (bank/lender) and ask to make an application for a short-sale program. Homeowners have to be approved for a short sale with their primary lien holder.
- 2. The lender will present the borrower with any government program, such as Home Affordable Foreclosure Alternatives Eligibility and relocation assistance to the borrower.
- 3. After the borrower is approved, the lender should provide the short sale terms, including incentives for successful completion of the short-sale and the date when the property must be listed at.
- 4. Now you will need to interview and find an agent to list your house on the market and deal with the process of selling it.
- 5. The agent you choose will now provide you with Broker Price Opinion (BPO). This is not an appraisal. The BPO will help you and the bank/lender to understand what’s the current value of the property. Consider listing the property at the highest price than the BPO in order to show the lender your good will and intention to sell the property at the highest possible price.
- 6. In the event of foreclosure, Junior Lien holders will get nothing, the same goes to short-sale. Your next step is to negotiate with Junior Lienholders to reduce the payoff. They are very motivated to settle for something rather than nothing and you want to negotiate since Junior Lienholders can come after you with personal money judgments that the short-sale creates.
- 7. Now you will need to submit the short sale offer to all lien holders and negotiate with all of them to get the approval of the sale.
- The last step is to work with the lien holders in order to obtain release from any liability.
There are a number of rules to get the short sale in South Florida to occur in a timely manner. When you need to sell quickly and cannot find a buyer, using a cash buyer could help you solve your problems. Things happen every day. Knowing you can turn to us at Bigger Equity can give you peace of mind knowing that you will be able to sell your home and take care of your financial situation.
One of the advantages of using us is that we make sure your home is in the best condition possible to get top dollar. By using our process, you get more of a profit from your house, whether the home is sold or rented. Our ultimate goal is to make sure you have what you need. In order to get more information on short sales and how we can assist, contact us at: (866) 333-8377.